This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Which of the following statements is (are) true regarding taxation of life insurance? I. Life ... (Read 128 times)

Capo

  • Hero Member
  • *****
  • Posts: 545
on: Jul 11, 2018
Which of the following statements is (are) true regarding taxation of life insurance?
 
  I. Life insurance proceeds paid in a lump-sum to a designated beneficiary are received free of federal income taxes.
  II. The policyowner must pay taxes annually on the amount by which the cash value of his or her life insurance policy has increased.
  A) I only
  B) II only
  C) both I and II
  D) neither I nor II

Question 2

Mary is interested in comparing life insurance policies. Rather than looking at the cost per thousand, she would like to compare the rate of return earned on the savings portion of the policy. Which of the following would be of the most interest to Mary?
 
  A) the policy's Linton Yield
  B) the policy's surrender cost
  C) the policy's traditional net cost
  D) the policy's net payment cost


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

s.meritte

  • Sr. Member
  • ****
  • Posts: 306
Reply #1 on: Jul 11, 2018
Answer to Question 1

Answer: A

Answer to Question 2

Answer: A


Capo

  • Member
  • Posts: 545
Reply 2 on: Jul 11, 2018
Wow, this really help

adammoses97

  • Member
  • Posts: 337
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

Although puberty usually occurs in the early teenage years, the world's youngest parents were two Chinese children who had their first baby when they were 8 and 9 years of age.

Did you know?

A good example of polar molecules can be understood when trying to make a cake. If water and oil are required, they will not mix together. If you put them into a measuring cup, the oil will rise to the top while the water remains on the bottom.

Did you know?

GI conditions that will keep you out of the U.S. armed services include ulcers, varices, fistulas, esophagitis, gastritis, congenital abnormalities, inflammatory bowel disease, enteritis, colitis, proctitis, duodenal diverticula, malabsorption syndromes, hepatitis, cirrhosis, cysts, abscesses, pancreatitis, polyps, certain hemorrhoids, splenomegaly, hernias, recent abdominal surgery, GI bypass or stomach stapling, and artificial GI openings.

Did you know?

Fatal fungal infections may be able to resist newer antifungal drugs. Globally, fungal infections are often fatal due to the lack of access to multiple antifungals, which may be required to be utilized in combination. Single antifungals may not be enough to stop a fungal infection from causing the death of a patient.

Did you know?

About 600,000 particles of skin are shed every hour by each human. If you live to age 70 years, you have shed 105 pounds of dead skin.

Sporic life cycles Sporic life cycles
Life cycle of Obelia, a colonial cnidarian. Life cycle of Obelia, a colonial cnidarian.
The Scale of Life 2 The Scale of Life 2
Life cycle of acetylcholine (Ach): (1) Ach is released into the synaptic cleft; (2) Ach binds to ... Life cycle of acetylcholine (Ach): (1) Ach is released into the synaptic cleft; (2) Ach binds to ...
Life cycle of a Plasmodium species that causes malaria Life cycle of a Plasmodium species that causes malaria
The tree of life, highlighting the phylogenetic relationships The tree of life, highlighting the phylogenetic relationships
Video: Fermentation pathways

For a complete list of videos, visit our video library